When will Bambu reconcile the Royalty Fee due for the prior calendar year?

According to Bambu's 2025 Franchise Disclosure Document, the Royalty Fee for the prior calendar year will be reconciled on or before January 15th of the following year. This reconciliation is based on the actual Net Revenues generated by the Bambu shop during the prior calendar year, minus all Royalty Fee amounts previously paid related to the prior year's operations. Any additional amounts due will be withdrawn no later than five days after the reconciliation is completed.

For a prospective Bambu franchisee, this means that the franchisor reviews the past year's royalty payments against the actual revenue to ensure accurate payment. If the franchisee underpaid royalties during the year, they will be required to pay the remaining balance after January 15th. Bambu will withdraw the due amount within five days after the reconciliation.

Conversely, if a Bambu franchisee overpaid royalties, the 2025 FDD states that the overpayments will be applied as a credit to future monthly Royalty Fees until the overpayment is fully applied. This reconciliation process ensures that royalty payments align with the actual revenue, providing a mechanism for correcting any discrepancies. Franchisees should maintain accurate records of their Net Revenues and royalty payments to facilitate this reconciliation process.